LG Uplus : Earnings Conference Call 2017.07.27

LG u+

2017 2Q Earnings Release

July 27,2017

-LG U+

Disclaimer

As of January 1, 2010 we adopted the Korean International Financial Reporting Standards (K-IFRS). All financial information contained in this document is based on K-IFRS.

The aforementioned forward-looking statements are influenced by changes in the management environment and relative events, and by their nature, these statements refer to uncertain circumstances. Consequently, due to these uncertainties, the Company's actual future results maydiffer materially from those expressed or implied by such statements.

The information contained herein should not be utilized for any legal purposes in regards to investors' investment results. The Company hereby expressly disclaims any and all liability for any loss or damage resulting from the investors' reliance on the information contained herein.

In addition, the information contained herein has been prepared in advance, prior to being audited by external auditors, solely for the convenience of investors of the Company, and is subject to change in the process of final auditing by external auditors.

Contents

1. Financial Highlights

2. Business Overview

3. Appendix

1. Financial Highlights

   Income Statement (Consolidated)

   Overview

   • Service Revenue recorded KRW 2.33 trillion, up 4.2% YoY and 1.9% QoQ

   • Operating Income recorded KRW 208.0 billion, up 15.5% YoY and 2.5% QoQ

   • Net Income recorded KRW 136.2 billion, up 4.2% YoY and 2.9% QoQ

     (Unit: KRW billion)

     Classification	2Q 16	1Q 17	2Q 17	YoY	QoQ
     Revenue	2,879.1	2,882.0	3,009.7	4.5%	4.4%
     Service Revenue Handset Revenue	2,240.3 638.8	2,291.1 590.9	2,333.6 676.1	4.2% 5.8%	1.9% 14.4%
     Expenses	2,699.0	2,679.1	2,801.7	3.8%	4.6%
     Operating Income 180.1		202.8	208.0	15.5% 2.5%
     OP Margin(1 )6.3%		7.0%	6.9%	0.7% p -0.1% p
     O P M ar g i n (2 )8 . 0 %		8 . 9 %	8.9%	0 . 9 % p 0 . 1 % p
     Non-operating Balance	(11.7)	(31.8)	(32.4)	176.9%	2.0%
     Income Before Tax	168.4	171.1	175.6	4.2%	2.6%
     Net Income	130.8	132.5	136.2	4.2%	2.9%
     Net Income Margin(3 )	4.5%	4.6%	4.5%	0.0% p	-0.1% p
     EBITDA	585.2	622.9	633.9	8.3%	1.8%
     EBITDA Margin(4 )	20.3%	21.6%	21.1%	0.7% p	-0.6% p
     EBITDA Margin(5 )	26.1%	27.2%	27.2%	1.0% p	0.0% p

     Service Revenue Operating Income

     2,333.6

     • OP Margin (1)

     • OP Margin (2)

(Unit : KRW in billion)

2,291.1

4.2%

YoY

180.1

202.8208.0

15.5%

YoY

2,240.3

8.0%

8.9% 8.9%

6.3% 7.0% 6.9%

OP Margin : (1) Operating Income/Revenue (2) Operating Income/Service Revenue

(3) NI Margin : Net Income/Revenue

EBITDA Margin : (4) EBITDA/Revenue (5) EBITDA/Service Revenue

2Q16 1Q17 2Q17

2Q16 1Q17 2Q17